The United Kingdom’s (UK) Financial Conduct Authority (FCA) has initiated a lawsuit against cryptocurrency exchange HTX, which is owned by controversial crypto investor Justin Sun, alleging violations of UK financial promotion regulations.
“We have seen crypto firms respond positively to our financial promotions rules and regulations. However, we will not hesitate to take action against firms that appear to breach our rules,” the spokesperson stated.
The legal filings name defendants including “persons unknown” who are currently managing promotions on behalf of HTX cryptocurrency exchange across various social media platforms.
Notably, the FCA has accelerated crypto application approvals in an attempt to mull the US more favorable regulatory environment for cryptocurrencies and firms of the industry, with already five firms approved to operate in the country since April of this year.
In October 2023, the Financial Conduct Authority introduced new rules governing the promotion of crypto assets, aligning their marketing with other types of financial promotions.
Despite his controversial moves, which have recently included a key role in the Trump family’s crypto ventures, Justin Sun — a billionaire Chinese entrepreneur and the founder of the decentralized blockchain platform Tron (TRX) — acquired HTX in 2022.
Notably, a wallet labeled “SUN,” identified by blockchain analysts as belonging to HTX, has emerged as the top holder of President Trump’s official memecoin launched in January of this year.
Featured image from DALL-E, chart from TradingView.com
